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Honored Contributor
Posts: 19,347
Registered: ‎03-09-2010

@Helen852, I've discovered with cars and other big ticket items, it's easier to let them do all the financing paperwork.  That way, I get the rebate and extra incentives.  Two months later, I'd pay it off with no penalty.  I wish they would cut a good cash deal, but everything is built around financing so you have to play the game, but with your rules!

Honored Contributor
Posts: 14,936
Registered: ‎03-11-2010

@dex wrote:

The dealerships in Oklahoma are advertising these vehicles with no interest loans but who knew that they weren't for people with a good credit score.They said nothing about that in the ads.


@dex I also live in Ok & you can bet those No Interest Loans already have the Interest included in your total price. I asked about it when I bought my car. The lady at the bank said someone is paying that interest & she said it's not the place that sold you your car. I always knew that but wanted to see what they would say. Don't be fooled. No such thing as an interest free loan.

 

I have never heard of a interest free car loan only available to people with bad credit. The only way that makes since is if the dealership figures they will be able to repo the car at some point when they miss a payment & they can sell it again.

Honored Contributor
Posts: 14,936
Registered: ‎03-11-2010

@LonestarBabs wrote:

Right now several manufacturers have a "low credit score" discount. I've seen it itemized along with loyalty cash, dealer discount, military discount, etc. It seems counterintuitive, doesn't it? People with stellar credit scores should go elsewhere if a dealer balks at making a deal. I remember a few years ago I went into a dealership and my credit score was so high the finance guy said "you can have whatever you want!" He actually gasped. They treated me well as a result.


@LonestarBabs We had the same happen. When I bought my car the guy at the dealership said I have been doing this for over 25 yrs & I have never seen a credit score like yours. We already had a pre-approved check the bank had mailed us but it was not enough. Went to the bank for a larger check & the lady said well you can't just walk in here & get a larger check. DH & I looked at each other & thought you think not. She left the room & came back & said well I guess you can walk in her to get a larger check. LOL!!! Now that my car is paid for they have sent us an even larger check for another vehicle.

 

Honored Contributor
Posts: 14,936
Registered: ‎03-11-2010

@sunshine45 wrote:

i wonder if him only having one debt (his mortgage) has anything to do with financing issues?


@sunshine45 It should not. I financed my car with 0 debt. 

Honored Contributor
Posts: 14,936
Registered: ‎03-11-2010

Don't be Fooled by those NO INTEREST LOANS since there is NO SUCH THING.

I asked them at the credit union are the no interest loans for real or was the interest included in the total purchase. I was told someone is paying that interest & it's not the seller. Think about it.

Valued Contributor
Posts: 874
Registered: ‎03-13-2010

For 25 years my husband and I owned a franchised mc dealer and handled financing of vehicles just as car dealers do.  Yes, manufacturers do offer, interest free and low rate loans.  Their cost is built into the price of everyones vehicle.  Most often these offers require you to keep the loan open for a period of time they also try to get you to purchase additional products on which they make huge margins.  Beware of dealers who say you don't qualify for the offer when you know you have a good credit score.  They will put you into loans where they make more money.  Believe me the f&i department of dealerships is a profit center.

 

Technically, they CANNOT pull a credit report unless you authorize it.  If you purchased there most likely there was a paper you signed in all the mess of paperwork that said you authorized them to do so.  I would call and ask if they did pull one without your authorization.

Valued Contributor
Posts: 567
Registered: ‎03-11-2010

@kitty60   I worked for the finance arm of an automotive company so I know of what you speak.  Having just finalized our lease yesterday the other money makers for the auto company (finance arm) are acquisition fees and disposition fees on the leases now.  When you dispose of the car, all you do is turn it in, it gets inspected (which I also did) then to another dealer or auction. never does the company, dealer or financial institution clean the car out ..  it's clear profit for the financial institution.  

 

Since we always got our vehicles at invoice, the 0% didn't make them any money on us and we didn't purchased any extended warranties or extras.  I remember when the 0% all began, it was right after 9/11.  We booked so many contracts on the books it was crazy.  The dealers actually made a flat rate on the contracts, depending on how much was financed.  Then if the customer paid it off before 3 months, the money was charged back to the dealer unless they were on a no charge back plan.  The same goes for a normal contract with special rates as well.  

 

Helen852